How to make entries for shareholders' dividends at the end of the hotel year

1. Determine the dividend distribution amount, form liabilities and reduce undistributed profits.

Borrow: profit distribution

Loan: dividend payable

2. If the shareholder is a natural person, the tax shall be withheld and remitted, and the tax withheld and remitted from dividend payable shall be transferred to the tax payable.

Borrow: dividend payable.

Loan: Taxes payable-personal income tax

3. If dividends are paid by way of transfer, they shall be paid according to the after-tax balance accrued by dividends.

Borrow: dividend payable.

Loans: bank deposits

Step 4 pay taxes

Borrow: Taxes payable-personal income tax

Loans: bank deposits